PfP Capital, our fund management business, has announced that it
intends to launch a new fund in partnership with the Scottish
Government to invest in mid-market rent ("MMR") properties
throughout Scotland.

PfP Capital is targeting a total fund size of £150 million which
will be comprised of a £47.5 million investment from the Scottish
Government and an initial £10 million capital commitment from
Castle Rock Edinvar is intended. PfP Capital will seek to raise at
least £87.5 million of additional capital from third parties over
the coming months.

The fund is expected to benefit from index-linked returns
derived from the rental income and will target institutional and
pension fund investors, with a focus on Local Government Pension
Schemes ("LGPS").

Once established, the fund will look to source sites for, and
develop and operate, around 1000 much needed new MMR homes across
Scotland providing affordable housing to people on low and modest
incomes. The investment from the Scottish Government is a
significant commitment to implement its plans to deliver 50,000
affordable homes by 2021.

Chris Jones, Managing Director at PfP Capital, said: "This
investment will allow us to operate a strategy delivering a
significant number of affordable homes to people across Scotland
and we are delighted to work with the Scottish Government on this
exciting initiative. This fund will also provide a great
opportunity for institutional investors to fund the next generation
of Scotland's affordable homes and secure stable, inflation-linked
returns."

Richard Jennings, Managing Director at Castle Rock Edinvar,
said: "This fund demonstrates the importance of financial
innovation in delivering affordable homes and Castle Rock Edinvar
is delighted to be an early investor. We are looking forward to
working with Places for People Group colleagues at PfP Capital and
making it a success."

Making the announcement during a visit to a housing development
in Edinburgh, Housing Minister Kevin Stewart said: "This investment
will support people on low and modest incomes to access high
quality rented accommodation at affordable rates and is one of the
many ways in which we are delivering on our target of 50,000
affordable homes by 2021, backed by over £3
billion.

"Affordable housing is about more than just bricks and mortar.
We want everyone to have a safe, warm home and schemes like this
will help to create a fairer Scotland, while delivering great
economic benefits."

PfP Capital has appointed Noble & Co as financial adviser
and placement agent on the launch of the Fund, with Rettie &
Co. appointed as property adviser to identify suitable mid-market
rent investment opportunities.

The above is intended as a mere statement, it does not
constitute or form part of, and should not be construed as, an
offer, invitation or inducement to purchase or subscribe for
securities nor shall it or any part of it form the basis of, or be
relied on in connection with, any contract or commitment
whatsoever. This statement does not constitute either advice or a
recommendation regarding any product.﻿